RRSP vs Mortgage Calculator

About your mortgage:
My current mortgage rate is: %
The principal outstanding is: $
My monthly mortgage payment is
(subtract property taxes if included):		 $
About your extra cash:
I have a lump sum payment of: $
I would like to increase my monthly
mortgage/RRSP payment by:		 $
About you:
My marginal tax rate is: %
Assumptions:
- Annual rate of return expected on a RRSP investment =5.00%
- Annual rate of return expected on a WOF investment =3.00%
- Estimated inflation rate =2.00%
- Monthly RRSP contributions and mortgage payments remain fixed over the specified period

Based on the information you provided, we have calculated that you have
years remaining in your mortgage amortization period.

The following are your options and financial results:

1. Mortgage payment:

If you made:
- A lump sum payment of $ towards your mortgage, and
- Increased you monthly mortgage payment by $
You would see:
- Your total mortgage payments decrease by $ , and
- Your mortgage amortization period reduced to years

2. RRSP contribution:

If you made:
- A lump sum RRSP contribution of $ , and
- Increased your monthly RRSP contribution by $
You would see over years
- Your RRSP investment increase to $ , and
- Your tax savings on your RRSP contribution add up to approximately $

3. RRSP contribution & mortgage payment:

If you made:
- A lump sum RRSP contribution of $ , and
- Increased your monthly RRSP contribution by $
AND if you used your tax savings to pay down your mortgage, you would see over years:
- Your RRSP investment increase to $ , and
- Total payments to your mortgage decrease by $ , and
- Your mortgage amortization period reduced to years

4. WOF RRSP contribution:

If you made:
- A lump sum RRSP contribution to the Working Opportunity Fund of $ , and
- Increased your monthly RRSP contribution to the Working Opportunity Fund by $
You would see over years
- Your WOF RRSP investment increase to $ , and
- Your tax savings (RRSP tax savings PLUS tax credits available to purchases of WOF) on your WOF RRSP contribution add up to approximately $

5. WOF RRSP contribution & Mortgage payment:

If you made:
- A lump sum RRSP contribution to the Working Opportunity Fund of $ , and
- Increased your monthly RRSP contribution to the Working Opportunity Fund by $
AND if you used your tax savings to pay down your mortgage, you would see over years:
- Your WOF RRSP investment increase to $ , and
- Total payments to your mortgage decrease by $ , and
- Your mortgage amortization period reduced to years

Your Best Financial Option:

The inflation adjusted present value of each option (excluding cash outlays) is:
Option 1 - Mortgage payment $
Option 2 - RRSP contribution $
Option 3 - RRSP contribution & mortgage payment with tax savings $
Option 4 - WOF RRSP contribution $
Option 5 - WOF RRSP contribution & mortgage payment with tax savings $

Based on the information you provided, your best financial option is to .